Only modest gains in L.A. housing market

There's always a big increase in sales activity from February to March as the spring home buying season takes root, and this year was no exception. L.A. home sales jumped 28.7 percent in March compared with the previous month, according to Dataquick. The problem is that Socal sales from February to March have averaged 37 percent since Dataquick began keeping records in 1988. So 2012's increase is actually lower than usual. Year over year, L.A. County sales were up 2.8 percent. Meanwhile, L.A.'s median price was $306,000 in March, up 2.3 percent from a month earlier but down 4.4 percent from March 2011. From press release:

"The year is young and lots could still change, but the results from the first big sales month of 2012 suggest the market is stuck in low gear. This remains a very gradual - not to mention fragile - recovery. Last month's big gain in sales from February was seasonal. A lot more people get out and shop after the holidays and as spring approaches. More telling was the relatively small gain in sales activity compared with a year ago. It's a reminder that, for many potential buyers, lower prices and amazingly low mortgage rates still aren't enough to get them over their hurdles: tight credit, home values below what they owe on their mortgages, and uncertainties over the economy and home prices," said John Walsh, DataQuick president.

Distressed sales - the combination of foreclosures and short sales - made up about half of last month's resale market. Credit remains tight, but there were somewhat higher levels of adjustable-rate financing and "jumbo" loans. That suggests a somewhat more normal market.

MARCH HOME SALES (% change from March 2011)
Los Angeles 6,772 +2.8%
Orange 2,856 +9.2%
Riverside 3,756 -2.3%
San Bernardino 2,512 -1.3%
Ventura 820 +8.3%

MARCH MEDIAN PRICE (% change from March 2011)
Los Angeles $306,000 -4.4%
Orange $400,000 -7.0%
Riverside $200,000 +1.0%
San Bernardino $150,000 0.0%
Ventura $350,000 +0.3%

Source: DataQuick, DQNews.com